dead horse, and it has been beat a thousand times, it is really a game changer for investors. we are in the waiting game. depends on what the press conference of the day is. >> is 2013 going to be a good year for investors in the u.s. or what? >> i think it will be. assuming we have some sort of resolution maybe not even by december 31. i think that what you see right now, tyler, is corporate profits so high, interest rates are so low, i just think there is too much money in the system. >> january 1 is one deadline. other deadline is inauguration day. that will do it for "power lunch," sue? >> "street signs" starts now. see you tomorrow. >> welcome to "street signs." topping your headlines today, what the -- tying job less rate to the cost rate? i can't go for that. we will ask the man who runs

google heim's millions. our chart will lay out the real case. why are so many of us willing to pay what some call the apple tax? is d.c.'s problem revenue or spending? or stat of the day will help you make up your mind, mandy, if it doesn't blow your mind, first. >> i'm ready to have my mind blown. in the meantime, the mark set looking shaky at this point and s&p may miss out on postingity first seven-day winning streak in six years. reak, by the way, folks wab was back in october 2006. let's get out to bob. let's get out to rick. first, i want to ask you, bob, how much of this is due to the fed as opposed to the fiscal cliff. >> i'm not discounting the fiscal cliff but i think a lot of this is sell on the news related to the federal reserve. we have seen this news before. remember, take a look at the s&p 500. i don't think it is a coincidence we hit the highs of year september 14th.

that's the day after the fed meeting when they announced quantitative ease meetings. they bought into the fed meeting then started selling immediately after. we saw thmovie before and they e doing this before. two months high on the dow jones industrial, a two-month chart of the dow jones industrial average, and you will see. there are the highs. and we are drifting lower here. i put more of this on sell on the news of the fed. spike and bond yields got a lot of e-mails talking about inflation in 2013. this has not been a successful trade but number of the etfs exist out there. spider gold trust with the classic hedge against inflation. one to five-year tips. very big etf. then you can even bet against long-term treasuries with the shares ultra short. only works for a day. but none of these have been particularly successful this year. none of them are particularly on fire. but tle do exist if you're interested in dealing with inflation. mandy?

>> and we are interested. we are always interested in dealing with inflation. thank you, bob. talking of long-term treasuries. rick, i believe we saw quite a soft 30-year auction today. >> i tell what you, the auction was definitely on the spongy side. but then again it seems as though bob was pretty correct that yesterday, for whatever reason, the bears really started to celebrate on the idea that treasuries were ripe for the selling. even though they have sold off a bit, in the big picture, many don't believe that the case and i think that got in the way of the auction a bit. and you know, if you're going it trade the etfs, just remember, this is the third year that some of the brightest minds in the investment business are calling for the beginning after big bear market and treasuries. i just got done reading a tweet that bill gross is going to be buying some five years because it will get captured in the new treasury purchase program. and i will tell you this, if it wasn't for the fed's balance sheet i would hope for inflation because you won't get any until the world's better economic

place wp with the fed's balance sheet it'll be difficult to reign in a lot of inflation down to a little. >> we want healthy inflation if there is such a thing. thank you very much, rick. back at the ranch, the white ranch, otherwise known as the white house, breaking news. obama administration saying minutes ago saying it has seen no movement from republicans on the key issue of raising tax rate on the top 2% of u.s. earners. let's get to john who is at the white house. are we at a stalemate in the cliff talks now? >> that is certainly how it appears at the moment. looks like we will get to the end of the week without any sort of break through on the fiscal cliff. it is always impossible, mandy, to tell what is happening below the water line that is not vice inl to us right now. but jay carney just came into the briefing room and said republicans hadn't moved on the key issue of higher tax rates. and until that happens, the white house has made it clear they are not going to bargain in a serious way on entitlement programs. they are trying to crack

republicans, break republicans on that point. republicans have been in the process of cracking. you've seen high profile republicans come out and say, we need to concede this point. but that not true among the rank and file and therefore john boehner and leadership haven't been able to take that position and that is kind of stuck right now. >> joe, it is brian. i know you talk to those folks off the record as well. ip get it. a this point the president's plan can only be viewed as punitive. the money raised is about a fourth of what medicare alone wastes through fraudulent spending in a year. everyone understanding basic math knows it won't make a difference for anything. it is already spent with the post office and fha bailout. does the white house privately acknowledge this point? do they understand how big the deficit is verse thus small amount of money? >> of course they understand it. i don't accept what you just said, ryan. >> you can't debate math. >> well, you called it punitive. and i -- >> i i'm just wondering if that's what it is at this point?

>> i don't think it is. look, the white house negotiated a deal with republicans last year to cut a trillion dollars out of discretionary spending. they are looking for a $4 trillion deal. that's one-fourth of the way there. the white house is talking about $1.6 trillion in revenue knowing they probably won't get 1.6 trillion but you add the 1.6 and 1, that 2.6. >> that's over a decade. so 250 billion a year. >> right. >> 250 billion year. >> right. >> 250 days of operating for the federal government. medicare in 1970 spent about $5 billion. about 25 billion now, spends about 500 billion. >> the white house pro pro posed more medicare cuts than the republicans have. >> is the white house actually slicing off medicare? a hundred billion year? now you've got to make the argument you want to hurt mom and grandma. >> that's why the republicans

haven't laid out their medicare cuts. >> that's my point, right? >> yes. >> no party wants to go to the american people and say, we're going to go broke but we don't want to face the wrath of being the party that wants to hurt mom. >> well, of course. and all of the moms out there don't want to be hurt either. so this is not an easy question for anybody but the white house proposed a couple hundred billion in savings to medicare. republicans have put a couple things on the table. most notably, the rise in medicare eligibility age. but they have not detailed what they want if cuts except for what was in the house budget which they have abandoned as negotiating position. so the white house has put out significant amount of detail but they are waiting to go further until the republicans break on tax rates. but the idea that the going from 35% top rate to the clinton era rates of 39.6, i don't see how

you get to punitive in describing that. >> only because it is 5% of our problem but 90% of plolitical dialogue. you know, john, i've argued for it. i've argued for raising it so we can get to the big problems. that all. thanks. >> right. but it is part of the solution. look. ultimately -- >> you are right. >> somebody gives me a nickel, that's part of the solution. i still got 95 cents i got to find some place else. we got to go. i'm getting yelled at in my ear. >> all right. one point as you leave, the biggest part of the solution is a return to economic growth. >> bingo. >> spending cuts or revenue. >> spot on, my friend. that the best thing we have heard all day. >> i'm into that, john. >> all right, we've had more than 24 hours to digest what the fed had to say but time not on our side because, well, we, me, are as confused as of about specifics.

mr. leisman, help me, help us, help ourselves. >> i will do my best. it is not just you who is confused. it is reacting to the policy statement of yesterday at 12:30. as you might have expected the fed tightened policy. what we are seeing is a die sidedly hawkish reaction. this is since 12:30 yesterday. dow down 65 points. accelerated to the down side with comments about the fiscal cliff. ten-year up six basis point. gold like they are going to have fiscal san knit america. now 17,000 below. now i want to hear -- that's $17 there. down 17 bucks on cold. could gold /* bernanke could argue it was well telegraphed and could say the benefits are yet to come as fed buys 85 million. it could be that the market doesn't understand the fed or

new policy of tying the fund rate is more hawkish than the fed, what it said before, which can remain exceptionally low until 2015. the market thinks we get to 6.5% sooner than mid 2015. bernanke took pains yesterday to emphasize that's not the case. he said 6.5% is not a direct trigger raising rates. the fed could keep policy at zero if the rate gets to 6.5% so long as they are be a dued. it is unclear how investors should trade relative to that target. the fed may have taken a step backward on clarity here in an effort to foster more transparency. we have made the move to the calendar date because the fed thought 2 was unworkable and unclear and thought it could be better with a number. but we don't know how to trade the number. we don't know the sensitivity -- >> we don't bet on the fed, we bet on the number. >> this is one of your questions too. why the threshold. why the tarkets. >> why the then sort of go back

off of the targets. >> especially if they are not a hard target anyway. not immediately triggering rate hikes. >> why do we have it there? >> exactly. >> help me. >> help us help you help us. thank you for helping, steve. >> my pleasure. >> that clears sthings things up. not. the question remains, what do you do with all of this information? scott minor, chief investment officer is here. sorry about my rant with john. i was agreeing with john under a way about that. you're a guy that does numbers for a reason. you are more right than anybody out there on your economic calls. calls to the bond market et cetera. what do you make of this deficit fight in d.c.? it seems like a shell game. >> look, have you hit the nail on the head. this is a spending problem, an tax problem. taxes ever depressed because of the cyclical slow down in the economy that we normally expect. the problem is that 23% of gdp plus or minor spending, that's well above the historical

numbers and should be closer to 18%. >> how does all of this affect your predictions for 2013? >> well, i mean, look, i think it tells us that the only policy that really matters at this point, is monetary policy. because the reality is whether we have fiscal tightening through a deal or fiscal tightening by going over the cliff. it doesn't matter. and therefore, the entire weight is -- >> or things get better. federal raise rates which is also fiscal tightening. so we have three options, tightening, tightening or tightening. >> well i tend to think that near term prospects of things getting so good that the fed would raise rates is pretty remote. though i do agree with steve's statement. that statement yesterday introduced a whole new level of ambiguity. and while i don't understand is, where did the -- where did their commitment to 2015 go? you may -- they make decisions -- >> the tendency projection

between 6 and 8% in 2015 so they just swap one number for the other. >> i understand. but the thing is, if the feds, if dr. bernanke's policy is one that encourages more transparency from the fed and they are going to use this means of communication, then have you to be consistent. the minute we aren't consistent on that -- >> back to the original question, what does it maeb ean terms of prediction for 2013? >> don't ignore her. >> i am not used to being ignored. >> really, tie it all in. >> basically when you are facing a world -- let me back up one second. i could colorado hauld have giv advice three and half years ago. and if you had just done that and chaenged, you would be a winner. think i everyone gets too caught up in drn- >> what was the advice. >> be long security, be long

gold. >> has anything changed as a result of the environment of the confusion we are in. >> the one big change is that rates wsh treasury rates, are ridiculously low and there is no value there. but in terms of credit securities, long equities, long gold, in a world where we are just printing money and that the only policy -- >> he likes european stocks. >> remember i fell off my chair last time i heard that. >> some of the european markets like germany have done spectacular well. >> we were along germany, spain -- >> are you still? >> yes. >> you are buying spanish stocks. >> yes. >> check you for fever. >> why is it attractive? >> everybody says spain will break up. they going bankrupt. >> doesn't the opportunity the greatest or something along those lines? >> blood in the streets. >> right. >> look. when you look at where we are cyclicly on earnings, when you

look at where we are on valuations, spanish equities, real o really cheap. and the bottom line is that even today, as we hear positive news about the banking union, the europeans are begrudgingly and distressing structural issues. >> give us one crazy wild card idea for 2013. >> oh, i like that, i like that. >> you thought spanish stocks are in a crazy enough idea? >> no, that loco. we were crazy. not loco. >> boy, i tell you, i think the place to be is in precious metals. silver. >> silver as opposed to gold? >> silver is the beta trade. >> lead. >> i have been long lead. >> more economic? terms of a trade. >> the last question, which is the most important, your company owns part of the dodgers. >> mm-hm. >> how much are you spending

this year? >> well we don't own the dodgers. we put the deal together. >> but you're in there. how much will the dodgers spend this year? >> the dodgers will spend the amount of money they think is efficient to win this series. >> i knew you were going to dodge that question. >> ha, ha, ha. top that. >> thank you, scott, as always, good to see you. okay, moving along. >> on deck, is the fed building a new house of cards? why the plan may crush housing if you plan to sell off any time soon. you don't want it miss the debate we have coming up. >> and the power tool cliff, will washington throw a wrench? n it? we talk to mr. fix it. [ male announcer ] this is steve.

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all for one flat fee of $4.95 per month. get rid of prepaid problems. get chase liquid. fiscal cliff clock is ticking and throwing a real wrench into the economy. but one ceo is ratcheting up pressure on washington to get a deal done. let's bring in nick, ceo of snap on tools. he is in town for the yale summit. welcome. >> kb g to be with you. >> why is it so important to get a deal done specifically for your company. >> well, if we good over the fiscal cliff, it can't be good. and of course that ratchets up uncertainty. i think one of the things you can talk about the fed, talk about interest rates, but someone once said or someone

said recently, it is a psychology, stupid. when we call on our customers, we see that most important thing is their psychology and getting a deal dpun would help that. >> how would that materially effect your company? would it change your hiring plans? >> i think it can. i think the thing do, if we go off the fiscal cliff, i don't know what depth of that effect would be, but couldn't be good. but we have seen that movie before. we went through recession probably the most whithering so i think ceos, at least our view of it is, is you have to have a good understanding of what are the long-term benefits for you. for us helping our van business, making sure that's good. investing in emerging markets and making sure that we roll the snap-on brand out of the garage to other industries. anything outside of that group, we would be more discretionary. >> is there any way to quantify how much tax increase on the middle class will hurt your sales if at all? >> no, i don't think -- i

wouldn't want it speculate. if you look at the auto repair industry which we've been in, cars have gotten older every year since 1980. and every time the fuel economy goes up, fuel economy goes up, new technology is required so our customers, have to, if you will, retool. i think that tends, our customers which are after all professional mechanics and operating in critical tasks where they have to be accomplished, aren't necessarily affected by taxes. >> nick, you said you want it roll out of the garage and into other industries. which industries. >> places like aviation. power generation. those kinds of things. emerging markets is a big place for us. >> which one specifically? >> china, india, indonesia. infratruck tour and equipment is big. china is the biggest car market in the world but repair market just starting.

that's why in the last four or five years we put 1500 people and five factories and new design center getting ready for the wave just building. >> good luck with your plans and thanks for being with us. >> meantime, union overseeing air traffic controllers warning members that one in ten could be laid off if america flies over the fiscal cliff. the national air traffic controllers association is dangling the threat of chaos, flight delays and higher ticket prices if the economy gez over. faa will have to absorb 8.2% automatic reduction if we good over the cliff. by the way, boone pickens just tweeted, i'm 80 and one place i've never bun is over the fiscal cliff. >> do they have the hills over there? any way, if you are one of the 15 million people with an ira account, listen up. herb thinks it is time to shake up your money. >> and apple tax, wait until you see how much americans

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before the break we asked, if the middle market were a country where would it rate in third. listen up, mr. herb green is here with things you need to be thinking about right now. >> right now. in fact, this will sound ridiculously elementary to many of you. but to many others, it is heads-up that can be repeated enough. look, when rates go up, yields

go down. it is that sea saw effect that many of us take for granted. if you've been chasing yield to pad your ira as i have, or not, here is investing 101 tips you may want it consider. first, bond mutual funds are not the same as buying a bond. they do not mature. you are not guaranteed a return of your principle. if rates go up, the price of the fund will likely fall. the longer the due rafduration the bonds, the great ef. according to morning star, an astounding amount of money has been flowing into emerging markets and junk bond funds. these funds may be less immune to the impact of rising rates in the u.s., but they tend to be more vulnerable to what happens in the stock market hit. they got pounded in 2008. finally, if you've been buying stocks, stock funds or stock ets for the yield, just remember, rates rise and stocks fall. so likely will your investment.

bit way, if you have an ira and you are worried about this market especially talking about rising rates here, can you actually short the market or hedge your etf. or your ira. two options, grizzly short fund. one i used in 2006, 2007, or the equity -- ranger equity barrier etf. this is something that people think of hedging their -- >> how much do you buy? what do you hedge -- >> everyone has their own benchmarks. some people say 15% is a way to go of your total portfolio. but i'm not giving advice. i just said over time, i will tell you, when the market falls, when you buy these things and you feel like a chump, when the market comes in, have you them there. they are like insurance and other people use options and this is just, you know, this is out there for the average guy to use if they want to use it just to put it aside for a rainy day. >> and we are here to stop them from feeling like chumps. >> thank you. >> the glorious day in the sun,

then put down the ipad and iphone. we have the stat that will have you rethinking the scary tax hikes. >> and then, hall and oats in a bloody brawl. this is not a joke, guys. more on the most awesome headline of the year. let's make it a decade. ♪ [ engine revs ] ♪ ♪ [ male announcer ] the mercedes-benz winter event is back, with the perfect vehicle that's just right for you, no matter which list you're on. [ santa ] ho, ho, ho, ho! [ male announcer ] lease a 2013 c250 for $349 a month at your local mercedes-benz dealer. i heard you guys can ship ground for less than the ups store. that's right.

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first of all, why don't we look at what is happening with best buy. this stock is going gang busters. and is your draft -- >> yes. >> do you have anything to do with this? >> no, i'm still under water. but the star tribune reporting that the founder about to make an offer it take best buy private. that offer reported to be the 5 to $6 billion range. best buy is about 4.7 billion with today's jump. so could be higher than the stock is even today. >> okay, w we've got another su. research in motion. >> research in motion up 2% here. couple of different reasons. raising from 13 to 10.

immigrations department will test out the blackberry 10. earlier they said they would ditch the blackberry for the iphone, but decided to give it another chance. there is something called the golden cross that they like. he is nearly breaking even, he could win this thing. unbelievable. >> i'm a dedicated blackberry user. happy to see this. cvs, is this not at an all-time high dating how many deck it's? >> basically back to 1978, when you were 7. >> i look good for that age. >> you look good for 72. >> opening 1506 these mini clinics to get shots and basic medical care, inside cvs. also 60% of store prescriptions delivered electronically by the end of year. my prediction about the internet being a fad, clearly incorrect.

>> nelexmark, downgrading. >> concern about sustained profits, after exits the ink jet business. >> another all-time high and it is -- >> time to move on, apparently. >> boston beer. >> have to move on. >> okay, okay, okay. what are we moving on to? >> do you feel like you are spending more and more every year in electron sniks if you do, you're right. especially if they are bought from apple. last year americans spending almost 1% of their household income on iphone webs ipads, i-devices. it is like a tax we voluntarily pay. i love this segment, lauren, because all this talk about the tax hike and 2% and all this stuff. and americans could have a phone that works for a lot less than the iphone. >> and it is not just the phone. the itunes down loads.

the pretty accessories. this is my steve jobs castity belt for mine because i broke mine when i first got it. >> do you think this might be the peak? >> no. particularly with the apple tv on the horizon, analysts expect it to be about $800 a year. >> i'm a fan boy. i'm apple everything, lauren. you're right. the new mac, i-mac, two grand with most options. you can get a dell pc, you have to have windows, but 400 bucks. why do we focus on the tax hikes and not that we are buying this stuff over here costing us just as much, that does not destroy the economy. >> i think the bigger picture here. and i have been picked on about this story and i'm totally fine with that. but it is the whole family. not just the tv in the living room or family room. the kids, 48% according to the

recent presentation, the kids want the i-touch or starter devic devices. there stores in ten global cities are packed. people want apple product. >> they do. two of my kids want apple product this christmas. they won't get them but they want them. >> mandy. >> my kids are getting eye touches. they are in school not watch "street signs" so i can say that. >> they want games. this year it is mine craft. who knows what it'll be bedazzled or whatever. you are downloading movies. if you are on a plane, this is

the best thing that ever happened to a family. >> i agree. but you're the wealth person there. here's the thing. we are told that $200 a month tax increase on middle class if we go over the fiscal cliff will doom us. well die. whole country will go bankrupt. you understand my facetiousness. but we spend well over $200 a m on things that didn't even exist ten years ago. the smart phones pb apps. cars. why are we spending 200 a m on things that didn't even exist back then. >> you don't feel it the the same way. >> you have to australia to get that for your tax says all can i say. thank you, lauren young. >> thank you.

>> and she called it a chastity belt, maybe that's a brand in i don't know. i'm not hip. >> it was back in the medieval times. definite lay brand. speaking of spending, luxury for less is turning into a trend this holiday season. retailers are struggling in flag ship stores but are cleaning up in outlets, right, courtney? you've been tracking this trend and you are in an outlet in new jersey as well? >> that's right, i am, mandy. it seems the consumers are finding value in the off price luxury. especially outlet centers like this one here and it is surprising a number of analyst at least on the critical shopping days. deborah said she was surprised by both traffic and excitement on sax on fifth locations on black friday. wsl strategic, wendy, says the early success story when it comes to early openings on thanksgiving an black friday. nordstrom is planning to open 15

rack locations in 2012 and one full line store an robin lewis says that says something about the growth strategies of many of these luxury retailers. now capri partners has interesting data that shows that outlet malls are showing higher than average occupancy rates and sales growth compared to their traditional mall counter parts. >> outlet malls are gaining attention of investors, which is been on the side lines of retail investors for probably the last two or three years. >> now if you take a look at shares of simon property group and tangor factory outlets over the last two years, handily outperforming the s&p index. interesting performance for retailers and stocks associated with them. >> thank you very much. courtney, keep warm out there. do christmas shopping at the same time. >> next up, today's thing that makes you go hhmmm -- the incredible medicare stat that may have you thinking

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i'm bill griffith. is the fed helping or hurting the economy at this point with its latest monetary policy issues? who better to duke it out than our own steve liesman and rick san telly. also, congressman brown is warning our economy will collapse if we don't cut spending. find out if he is willing to raise taxes if a fiscal deal also includes big spending cuts. and dan nile joins with us his top picks for next year and you will not believe which stock he likes the most. for 2013. maria and i look forward to seeing you from here at the new york stock exchange at the top of the hour for the important last hour of trading. see you guys then. brian? >> i can't wait. we will find out what dan likes. good tease there, bill. thank you very much. yeah, as the song says, everyday, starting right now, we will try to bring you something that makes you go hmmm.

bring something up that makes you think otherwise or maybe it is just darn whacky. but our first is not funny at all. the debate over whether washington has a revenue or spending problem, here is something that makes you go hmmm. medicare spending. in 1967 it clocked in at 2.7 billion np in today's dollars that's about 20 billion equivalent. in 2010, we spend $524 billion. that, my friends, is 19,300% increase in spending. it does a lot of good. medicare, medicaid helps a lot of people, but also 200 billion a year, according to the guy that ran it, in wasteful spending. >> that didn't make me go hmmm, like that blew my mind. 19,000%? >> 19,000%. unbelievable. >> it helps a lot of people but a lot of it is wasted. according to the people at medicare themselves that ran it. >> speaking of healthcare, a big deadline is looming for the

president obama's healthcare act. tomorrow is the last day people can opt out of exchange. about half of the country says thanks but no thanks. joining us is betsy mccoy, they is author of decoding the obama health law. and she brought a huge big stack of pages you have read. >> yes, since that time the administration spewed forth 14,000 pages of additional regulations and they are just getting started. >> in terms of opting in or out of president's healthcare plan, only about half of the state or less than half the states are opting in. >> about 21 have opted out and a few are undecide fwecided but i clear that about half are not wanting to make their own exchanges. most don't know what an exchange is. most get health insurance at work and few plans through

brokers. but this vision is a third way for those who are currently uninsured and for the millions of people who are about to lose their on the job coverage because their employer will say, oh, that government mandated health plan is too costly. those people will all have to go to the health insurance exchange in their state and enroll in the one size fits all government mandated plan. >> but is it kind of like car insurance where you can pick your provider in a certain way? that the whole selling point is, you've got more options. >> no, it is not more options. these exchanges will be like super markets that only sell cereal. all the plans will be identical. bronze, silver, gold or platinum. but the difference is in co-pays and deductibles. they will all offer the essential benefits defined by the white house. >> you brought up a great point. subsidies for exchanges over ten years are more than savings they are arguing about in d.c. in other words the money is already spent.

>> what is shocking is that the subsidies offered on the health insurance exchanges will cost 1.7 trillion. and yet, even the republicans who are talking about reforming entitlements have ignored these. it is amazing to see that republicans don't see the elephant in the rule which is the obama health laws new subsidies for middle class people to buy health insurance plans. if they eliminated this before it ever went into effect, the fiscal problem would be over. it is far more than the 800 million in savings that boehner asked for. >> that certainly makes us go hmmm. up next, if you plan to buy or sell a house, do you need to do it before we hit the unemployment rate that bernanke threw out there? we will do that next. person, with dedicated support teams at over 500 branches nationwide. so when you call or visit,

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we know that interest rates matter to housing, but how much? look at this chart going back about 20 years. it is interest rates, 30-year, in blue, and home prices, the median home price index in lime green, the seahawks colors, going up. home prices will generally go up over time always because of inflation, right, and bubbles that come down after bubbles, but as you can see, look at the

longer-term trend. i'll get out of the way here. it's sort of an "x," right in the reality is it's not perfect but generally as rates drop, prices go up because people probably don't buy homes based on the cost of the house but rather what they can afford every month, and diana olick is tracking that part of the story for you from washington. diana? >> reporter: that's right. it's amazing how fast this stuff can turn. barely a few hours after the mortgage bankers reported a new record low on the 30-year fixed chairman bernanke's new deadline for qe spooks the bond market and mortgage rates right along with it. it's impossible to say day to day exactly where rates are because while they rely on the price of mortgage-backed securities they rely on lender whimsy, competition which dan green of waterstone mortgage says. he notes rates have trended

higher in march of each of the last three years. now, you could argue that record low rates we have now are really not doing much for the housing recovery as the volume you see here is largely refis and a historically high one-third of all home purchases today are all cash. diane swonk says any impact on mortgage rates from bernanke yesterday will be temporary. we can see that already, but greater threat to rates is the inability to come up with reasonable fiscal policy, and i know you guys will have plenty to say on that. >> great stuff, thank you very much, diana. will the fed's latest moves have a short-term impact on the housing market? let's bring in stan humphries, chief economist at zillow and brian lewis, executive vice president at halsted properties. is this last call for both low interest rates and the housing market. >> who knows where the rates are going to go. bernanke is saying when it gets to 6.5%, that unemployment, he's

mandated to get 0 unemployment. when it gets to 6.5%, i'm raising rate. that is last call. guys, money is on sale. it is time to buy. get off your did you have. if you have access to the credit go refi and find that house. this is great news for the brokers in america, absolutely. >> stan, why do you say the housing market as it is right now is not even particularly rate-driven? >> yeah, i think if this is last call then last call is happening about 8:00 at night. i think analysts always expected what was driving the time-based horizon the fed was using before keeping short-term rates 0-to-0 at 2014, that was around the expectations for unemployment and they cut out the middle man saying expectations are being driven by employment. the timing aligns. they don't think the unemployment will be down until mid-2015 which was the time horizon before for increasing rates. >> what scares the begees geezers out of me is we now

consider 6% to be a high rate for a mortgage. >> do you know what my parents were paying in the '0s? >> 17%. >> absolutely. do we remember that? guys, right now, we're at 3.32%. who knows what it will do in two years and the i don't disagree with stan. absolutely. it's going to take a couple of years, but come on, not a lot of inventory out there. we have a tightening inventory in this country right now, and when unemployment gets lower, you're going to have more competition for the homes that we do have, and, stan, you run a website, a great run, love it. however, i run around with buyers, and i sell homes every day, and people look at me, and they say, look, with this interest rate, i can stretch my dollar way more, so i disagree. it actually has an impact every day bottom line for many buyers who do need credit. not one-third of buyers are cash. bring them on and give them my website. in new york we have a lot more than that, but there are so many people that need that credit,

and those rates matter, absolutely. >> stab, do you want to respond to what brian just said. >> these are historically low rates being paired with a price set of more than ten years. price reset and home values combined with low rates, this is a great time for home buyers who can afford the down payment and are going to be in the house for a deesents amount of time to buy a home. no denying that. i don't think bernanke's statement yesterday did anything to change expectations about the mortgage rates. what's going to happen, and i think in general the housing market is -- we're seeing strong recovery right now in the housing market. >> yes, we are. >> and i wonder is how much of that is thanks to the fed. like to ask of you both quick, 2013, housing market accelerate or decelerate? stan, you first. >> i think it will stay on track, less blisk ofrisk of a y. we're expecting modestly -- more modest than last year but still

on track. >> brian, ten seconds. >> tight inventory. a lot of demand, low rates. absolutely, 2013 record year. >> great. good stuff. thank you very much, stan and brian. >> thank you very much. >> okay. we've got some breaking news. more changes under way at yahoo! the company today announcing that mention levchin has been appointed to the board of directors. our own jon fortt a short time ago and here's what he said on the switch. >> we've got an exciting new leadership team in place and a reconstituted board. they have a clear strategic direction, and i think the company is poised to go up and up. at the same time i'm looking forward to the opportunity that i've been investing in yahoo! the last two and a half years and reinvest it back into

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